Archive: October 2016

Tread carefully; recent FTSE rally inflates already hard-to-justify valuations

A stock picker’s market? Stock prices — when did 25x EPS & a 2% yield become ‘cheap’? Recent and regular profit warnings hint at a degree of fragility re. stretched valuations. Restaurant Group, Whitbread, Next, and Sports Direct have all seen their share prices come undone after being rated in the high-teens to mid-twenties on…

Domino’s Pizza UK: Sustaining the Growth

Domino’s Pizza UK – Quality at an Unreasonable Price? Domino’s UK’s business model is high margin, highly efficient, and spins off cash. However, LfLs in its recent Q3 statement were down (from +14.7% in Q3 2015 to +10.5% for its important UK market, which accounted for 93% of group revenue in the period). Meanwhile, DOM…